Rates get high marks for consistency...>

US TSY FLOWS: Rates get high marks for consistency this week. Broadly weaker

across the board, near late session lows -- Tsy levels not seen since early Aug,

yld curves steeper w/3M10Y appr 50bps off 12+ inverted lows from 3 weeks ago.

- Not a risk-on, equities tripped lower in late trade ESU9 near 3000.0), gold

over 10.0 lower.

- Sporadic buying through session, but nobody drawing line in sand, covering

delta on way down, prop and fast$ acct squaring up ahead weekend and FOMC rate

annc next week.

- Earlier in week we noted Japanese funds, bank/insurance funds were partly

behind the bid in Tsys during July-August, bought most in 3 years -- but they

have been conspicuously absent last 3 weeks, thus the retrace that has been

spurring some position unwinds along the way. Seems too far/too fast scenario as

global slow down tied to US/China trade remains despite the "considering"

concessions chatter by both parties.

- The 2-Yr yield is up 8.1bps at 1.7999%, 5-Yr is up 11.6bps at 1.7507%, 10-Yr

is up 12.4bps at 1.8958%, and 30-Yr is up 11.4bps at 2.3693%.